minimization of waste by applying value stream mapping in the supply chain cement indusstry

Topics: Value stream mapping, Lean manufacturing, Value added Pages: 13 (2779 words) Published: October 21, 2013
IOSR Journal of Business and Management (IOSR-JBM)
e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 9, Issue 3 (Mar. - Apr. 2013), PP 79-84 www.iosrjournals.org

Minimization of waste by applying value stream mapping in the supply chain of cement industry
Abu Md. Saifuddoha1, Md. Ahasan Habib2, Sohana Yasmin Sumi3, Md. Jennurine4, Md. Saiful Islam5
1

(Student of IEM Department, KUET, Bangladesh)
(Lecturer of IEM Department, KUET, Bangladesh)
3
(Student of IEM Department, KUET, Bangladesh)
4
(Student of IEM Department, KUET, Bangladesh)
5
(Student of IEM Department, KUET, Bangladesh)

2

Abstract : The purpose of this paper is to identify and address various wastes or non-value added activities in the supply chain of a cement industry using a value stream mapping (VSM). Critical observations and interviewing techniques were used with open-ended questions to understand the processes involved in the value chain of the cement industry. There is an overproduction, excess inventory and information delays in the whole supply chain. Waste or non-value added activities removal from the cement-processing sector is one key to improving the productivity of the sector. The paper addresses the various wastes or non-value added activities in the processing side of the supply chain of a cement industry, using VSM as an approach which was hardly ever attempted before.

Keywords - Waste removal, value stream mapping, Current state mapping, Future state mapping, supply chain.
I.

INTRODUCTION

The cement industry of Bangladesh is a rapidly developing sector of the economy Many countries cannot produce enough cement to meet their internal demand, and they depend on imports. However, Bangladesh is self-sufficient in fulfilling local demand for cement. Even so, the installed production capacity is higher than local demand. In Bangladesh, there are around 55 cement-manufacturing companies, most of which are in operations either on a large or small scale. A total of 34, including multinational cement manufacturers, are in commercial production.

Among local brands, Shah Cement, Meghna Cement, Crown Cement, Fresh Cement, Premier Cement and Seven Circle Cement are famous across the country.The five multinational cement companies in operation are: Holcim, Heidelberg, Lafarge Surma, Cemex and Emirates.

Despite the huge demand supply gap that persists for Bangladeshi cement industry, very little has been done for improvement in the productivity by reducing the processing waste of the industry. In this paper, an attempt is being made to apply value stream mapping (VSM) approach to address various wastes in the processing side supply chain of cement industry sector in Bangladeshi context. This paper therefore has three goals. The first is to characterize today’s traditional practices for the delivery of the product. The second is to describe means for improving systems-level performance. The third is to introduce value stream mapping (VSM) as a methodology for modeling and analyzing supply chains. To achieve these goals, details and an analysis are presented of the supply chain configuration of the cement industry.

II.

METHODOLOGY

The data presented in this paper were obtained from a cement industry. Data about industry practices at large were collected over 1 month by conducting in-depth interviews with more than 25 practitioners working in various departments of cement industry (including supply chain engineers, warehouse operators, structural engineers, materials managers and expediters), raw material support suppliers (upper management as well a project managers and shop production managers). Interviews included an initial workshop and other face-to-face meetings, numerous telephone interviews with follow-up calls and e-mail exchanges. Discussions were structured around specific project data when available, but invariably also included anecdotal, historical evidence. To augment the data collected through interviews, the...

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